Arsenal's home defeat to West Ham on Saturday and Liverpool's win at Manchester City 24 hours later saw the Reds jump to an 11 point lead at the top of the Premier League table.
Ahead of Wednesday night's trip to Nottingham Forest, Arteta was asked if they had surrendered the title to Liverpool.
He replied: "It was a very disappointing weekend. The previous 15 games we had won 10 and drawn five - exactly the same as Liverpool with exactly the same goal difference. So we have been extremely consistent over the last three months considering everything we have been through. We have generated that momentum and it was that weekend where we have to go again but we got a defeat. On top of that they win.
"When you are trying to beat that momentum and we put so much into it with the circumstances that we have, it was a really hard one to take. The reality is there are so many games to play and you have to get back to it."
Asked about the Hammers setback, Arteta admits the result and performance left him regretful.
"I don't know, it's not a frustration. It's a feeling of knowing how much we had put into it, to be where we are, that when you have a chance to take another step and then on Wednesday will have to be another one and then on Sunday another one - especially with the form Liverpool are in. It was a tough one to take, especially at home where we have been so consistent."
However, Arteta insists Arsenal are still in the title race. Indeed, the manager is adamant no-one will be giving up inside the Gunners, despite the 11 point gap with Liverpool.
He said, "If not I will go home. Mathematically it is possible. You are there, you have to play every game, suddenly three days ago we could close a gap and you are like 'you are one-and-a-half games away'. It doesn't matter, we have to continue to go.
"The difficulty is higher than three days about but if you are going to win the Premier League you have to do something special. If you are going to win the Premier League with the circumstances we have you will probably have to do something that nobody else has done in the history of the Premier League."
Meanwhile, Arteta was asked about Forest and their season so far. Forest sit in third place on the table, six points behind Arsenal.
Arteta admits he's been impressed by the work of Forest manager Nuno at the City Ground.
"Unbelievable. Not only with Forest, but what he did at Wolves, it was incredible. Huge pride for him, the coaching staff, the club as well. What they have generated after coming into the Premier League is a remarkable story so well done to them."